The Irish low-cost carrier Ryanair is Europe’s largest airline in both passenger traffic and fleet size, and also one of Europe’s most consistently profitable.
The airline reported a pre-tax profit of €2.9 billion ($3.3 billion) in the first half of its fiscal year, a 40% increase over the same period last year. Ryanair attributed some of the increase in earnings to improved aircraft delivery schedules from Boeing, allowing it to carry more passengers. It flew 119 passengers for the period, a 3% year-over-year increase.
Ryanair flies only the Boeing 737 aircraft, which allows for simpler, lower-cost operations. Though impacted by delivery delays from the Chicago-based plane maker, which had been affected by labor actions, the carrier is now back on track, and says it will be able to add seat capacity in the late autumn and winter when travel demand peaks in Europe.
Ryanair says that higher airfares also contributed to higher profitability. Average fares on the airline’s network rose to €58 ($67), a 13% increase over last year. Chief executive Michael O’Leary said the increase in fares followed a snapback pattern after fares had fallen during the peak summer travel period in 2024.
Nevertheless, Ryanair has built its brand on providing the lowest fare possible, and a fare increase could compromise its position as the continent’s low fare leader. Also during the earnings call, O’Leary pushed back on proposed E.U. regulations that would require airlines to increase their allowance of cabin baggage without charge. Ryanair and other low-cost airlines in Europe, such as EasyJet and Wizz, charge for all bags larger than a personal item that can fit underneath an aircraft seat.
Airlines for Europe, the trade association representing European airlines, have pushed back on the proposal, saying that requiring airlines to include hand baggage in fares for all passengers would raise fares. O’Leary also claims that giving a baggage allocation to all passengers without additional fees would mean airlines would run out of space onboard for carry-ons.
Most legacy carriers in Europe and the U.S. allow a carry-on bag in addition to a personal item for free on all but the cheapest fares. In the U.S., ultra-low-cost carriers like Spirit Airlines and Frontier Airlines charge for carry-ons. These airlines have struggled domestically as legacy carriers have introduced more restrictive fares to compete on price, while continuing to offer traditional complimentary onboard service, global networks, and extensive frequent flier programs with myriad partnerships.
Proponents of the proposed E.U. rule say that enforcing a single minimum standard for all European airlines will make airfares more transparent and pricing fairer for consumers. The Department of Transportation, the regulator of U.S. airlines, does not have a similar rule and has not proposed one. The DOT does require that U.S. carriers adequately inform passengers and consistently apply policies.
O’Leary is known in the airline industry for outlandish statements that make headlines and get free publicity for his airline. In 2009, he floated a proposal to install pay toilets on board Ryanair aircraft, generating headlines around the world. E.U. regulators eventually nixed the idea, saying it would run afoul of E.U. regulations requiring sellers of food and beverages to provide free toilets. He’s also proposed charging overweight customers more, installing “standing seats,” and getting rid of armrests.
Ryanair did not provide any further comment on the impact consistent fare increases would have on customer perception of its low-fare brand. Ryanair operates a fleet of more than 600 Boeing aircraft, with a network reaching 230 destinations and 40 countries in Europe, the Middle East, and North Africa.
